Monetary Policy and Inventory Investment: Panel Data Evidence from China

Yuxin Ning, Huanying Wang
2018 Proceedings of the 2017 7th International Conference on Education and Management (ICEM 2017)   unpublished
This study uses 2000-2012 Chinese listed manufacture firms' data to examine the effects of monetary policy on the firms' inventory investment. The paper estimates the firms' inventory investment model using a dynamic neo-classical framework. We find that internal cash flow fluctuation is the most important factor to promote the fluctuation of inventory investment. Trade credit relatively weakens the impacts of monetary policy on inventory investment, and bank loan is the important channel of
more » ... rtant channel of monetary policy on inventory investment. Our findings could explain the reason for the fluctuation of inventory.
doi:10.2991/icem-17.2018.80 fatcat:kkpboar6qnfnbcc5acrme2rffe